The graph below depicts the cost structure for a firm in a competitive market. Figure 9-13 Refer to Figure 9-13. When price rises from P₃ to P₄, the firm finds that A) fixed costs are lower at a production level of Q₄. B) it can earn a positive profit by increasing production to Q₄. C) profit is still maximized at a production level of Q₃. D) average revenue exceeds marginal revenue at a production level of Q₄.

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The Answer of The graph below depicts the cost structure for a firm in a competitive market. Figure 9-13 Refer to Figure 9-13. When price rises from P₃ to P₄, the firm finds that A) fixed costs are lower at a production level of Q₄. B) it can earn a positive profit by increasing production to Q₄. C) profit is still maximized at a production level of Q₃. D) average revenue exceeds marginal revenue at a production level of Q₄.

The Graph Below Depicts the Cost Structure for a Firm